The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1887-07-18
LOADED Loaded Loaded
July 10 July IL July 8
1897. 1886. 1888.
Name of Road.


SPRINGFIELD, ILL.,, July 16.-ln the federal
court here to-day Judges Gresham and Allen
ruled orally on the motion for a receiver in the
case of the vandala against the Terre Haute
and Indianapolis Railroad Company. As here
tofore indicated the question of Injunction
to restrain the defendant company from operat-
ing the property was not considered. The
sourt said:
1.-THE Terre Haute company has been in pos
session of the Vandala road since the greater
d ortion Of it constructed. In fact, that
road was built by the Terre Haute company
and the other companies mentioned in Col Nc
X Gems affidavit in order to establish q through
line for the Pennsylvania company from New
York to St. Louis, and the lease or contract
under which the Terre Haute has held and
operated the Vandalia was part of
rangement whereby this through line to
be established and maintained. The Terre
Haute is in possession and has been under
the contract. 1t is solvent and able to respond
to any decree that may be rendered against IL,
and the court should not disturb the possession
in limne unless there is real danger of serious
injury to the property. showing OF such dan
ger has not been made. 1t is urged there Is dan
ger that the State may institute a proceeding in
one of it's courts to forfeit To franchise of the
Vaudalia company, and that the appointment of
a receiver would avert this danger. If there be
such threatened danger, it has existed for years.
No movement OF that kind has been made by the
State or threatened. We think that the danger
IN imaginary rather than real. 1t is further said
that the appointment Of receiver would avert
the danger of a suit to foreclose the first mort
gage. That mortgage required a sinking fund
to be created for the ultim ate payment of the
mortgage debt, and it is admitted that this has
not been done. IL is said in Colonel Mckeen's
affidavit. however which is not disputed
by anything in the record, that after the execu-
ton of the mortgage the Terre Haute company
and the other companies which promoted the
building Of the Vandalia road, having consulted
with some of the officials OF the latter company,
in view of the large sums which had been ex-
pended in the equipment and bettermert of the
Vandalia. deemed 1t unnecessary to pass anything
xxs.;@~ ~%A>
mortgage was therefore ignored by all parties,
including the trustees and the mortgage credit
ors 1t is not probable that the trusteee would,
under these circumstances. bring a suit to fore
close the mortgage solely because no payment
had been made TO the sinking fund. It is not
claimed that the interest has been promptly paid
upon the bonds secured by this mortgage
1t Is also further said that the recent
change which has occurred by the sale
of majority of the stock of the Terre
Haute company may result in in ury to the bust
Of the Vandalia company. 1t is sufficient
to say in answer to this that it does not appear
that thus far the Vandalia has sustained any in
Jury from this course upon the proof before us,
and without expressing any opinion to the
merits of the BILL we think the complainant hae-
necessary for the court to take possession of the
property for its preservation, and to operate it
by receiver pending the litigation. The mo-
tion for a receiver is, therefore. denied"
After the adjournment OF court, in reply to a
question by a reporter, Judge Hoadly said:
Judge Gresham will be back in Springfield in
September. In the meantime we shall demur to
the bill. Then the demurrer will have to be
argued. If our demurrer is overruled we shall
answer and finally sometime reach the argu-
ment itself But, whatever the incidents of the
trial may be, it is not probable important
case will terminate till it has reached Washing
ton
When asked how he supposed the Su-
preme Courts decision could be reached ne
SAID
THAT is hard TO tell, but probably not in less
than three four years"